Kraft Heinz is still a top holding at Berkshire Hathaway

The Kraft Heinz (NASDAQ:KHC) Company traded flat in early action on Thursday after Berkshire Hathaway (BRK.A) (BRK.B) confirmed that it did not sell even a single share in Q2.

Berkshire Hathaway (BRK.A) disclosed that it still held 325,634,818 shares of the food giant. The huge block of shares represents 26.6% of all the outstanding Kraft (KHC) stock. Warren Buffett’s firm acquired the position in 2015 as a result of the merger between Kraft Foods and H.J. Heinz Company.

Investors have been a little skittish about Buffett’s thinking on Kraft Heinz (KHC) after he admitted in 2019 to overpaying for the stock and misjudged how competition would evolve in the sector. At the time, Buffett said he would like to stay invested in Kraft Heinz (KHC) for five to ten years, which is a timeframe of 2024 to 2029.

Q2 earnings recap: Kraft Heinz Company (KHC) reported a 3.6% decline in sales during Q2 to $6.5 billion. Organic sales fell 2.4% during the quarter to miss the consensus expectation for a drop of 1.8%. Sales growth was noted to be lower than originally anticipated, as consumer sentiment remains cautious. Overall, Kraft Heinz (KHC) saw pricing increase 1.0 percentage points compared to a year ago, with increases in the North America and Emerging Markets segments partially offset by lower price in International Developed Markets. The favorable pricing was primarily due to pricing taken in certain categories to mitigate higher input costs. Volume/mix declined 3.4 percentage points, with declines in the North America and International Developed Markets segments partially offset by volume/mix growth in Emerging Markets. Unfavorable volume/mix was primarily due to waning consumer sentiment.

Shares of Kraft Heinz (KHC) are down 6.73% on a year-to-date basis. The dividend yield for new buyers of KHC stock is 4.64%.